Rising global defense budgets and demand for advanced military technologies continue to fuel growth across the aerospace and defense sector, lifting companies like RTX Corporation (RTX) and L3Harris Technologies (LHX).
Both companies maintain solid defense portfolios and are well-positioned to capitalize on military modernization programs and escalating geopolitical tensions worldwide.
RTX stands out with a diversified portfolio spanning commercial aerospace and defense, giving it broader exposure across multiple high-demand markets.
Its Pratt & Whitney engines and Collins Aerospace systems benefit from strong commercial aviation demand, while its Raytheon business captures growing appetite for missile systems and air defense solutions.
L3Harris, by contrast, holds a strong presence in defense electronics, communication systems, space technologies, and intelligence, surveillance, and reconnaissance solutions that support military modernization.
In August 2026, Raytheon secured a $22.9 billion contract to accelerate Tomahawk cruise missile production for the U.S. Navy, supporting a planned ramp to more than 1,000 missiles annually.
Collins Aerospace also won a contract worth up to $472 million to provide engineering services for the modernization and sustainment of the CH-47 Chinook fleet, including avionics upgrades.
On the L3Harris side, the company was selected by the government of Peru to provide its Viper Shield electronic warfare system for Peru’s F-16 Block 70 aircraft program in August 2026.
L3Harris also opened a new 50,000-square-foot maritime production facility in Providence following a $6 million investment, designed to produce advanced undersea training systems for the U.S. Navy and allied forces.
The company additionally completed a hot-fire test of its solid rocket motor for the Missile Defense Agency’s Next Generation Interceptor program, marking meaningful progress in U.S. homeland missile defense development.
The Zacks Consensus Estimate for RTX’s 2026 sales and earnings per share implies improvement of 8.4% and 14.8%, respectively, from year-ago figures, with annual bottom-line estimates moving higher over the past 60 days.
For LHX, the consensus estimate implies 2026 sales and EPS improvement of 8.2% and 9.4%, respectively, though its 2027 bottom-line estimates have moved lower over the past 60 days.
Stock price performance further separates the two companies, with RTX shares surging 31.2% over the past year while LHX declined 5.3% over the same period.
On valuation, LHX trades at a forward price-to-earnings multiple of 20.35, sitting below RTX’s forward earnings multiple of 27.63, reflecting investor confidence in RTX’s growth trajectory.
RTX’s Return on Invested Capital stands at 6.33% compared with 5.14% for L3Harris, giving RTX a measurable edge in capital efficiency and its ability to generate returns from invested capital.
RTX currently carries a Zacks Rank of 2, or Buy, while LHX carries a Zacks Rank of 3, or Hold, underscoring the current divergence in near-term outlooks for the two defense giants.
Given RTX’s diversified portfolio, stronger earnings growth expectations, superior recent stock performance, and higher ROIC, it stands out as the stronger choice among the two aerospace players right now.
